Frequently Asked Questions - Importing a Vehicle Purchased in the United States

• What is the purpose of the Act and how does it affect me?
• Must all vehicles imported into Canada be compliant with Canadian Motor Vehicle Safety Standards?
• Does the Motor Vehicle Safety Act Prohibit Vehicles Purchased in The United States from being Imported Into Canada?
• When did the Registrar of Imported Vehicle Start?
• What is the objective of Registrar of Imported Vehicles?
• What does the Registrar of Imported Vehicles (RIV) check?
• Who funds the Registrar of Imported Vehicle (RIV) Program?
• Is Transport Canada Committed to Harmonize Canadian Motor Vehicle Safety Standards with those of the United States?
• Why did Transport Canada introduce anti-theft electronic immobilizers and not harmonize with US safety standard 114?
• Does Transport Canada have a list of vehicles that may be imported from the United States?
• Who is responsible to determine the vehicle's compliance with Canadian Motor Vehicle Safety Standards?
• Who is responsible to update the List of Vehicle Admissibility?
• Is the List of Vehicle Admissibility mandated by law?
• What can an importer do to ensure the vehicle can be imported into Canada?
• Why are some manufacturers charging a fee for information about the vehicle's admissibility or recall letters?
• Why can't Transport Canada provide recall information about vehicles purchased in the United States?
• Does the Motor Vehicle Safety Act regulate vehicle warranties?
• What is Transport Canada doing about the price differential between vehicles sold in the United States and Canada?
• Does the Motor Vehicle Safety Act require that the modifications to bring the vehicle into compliance with Canadian standards be performed by the original manufacturer?
• Does the Motor Vehicle Safety Act interfere with the North American Free Trade Agreement (NAFTA)?
• What did Transport Canada do to solve the problem of new 2008 model year vehicles imported from the United States that did not have electronic anti-theft immobilizers installed that were certified to Canadian Motor Vehicle Safety Standards?

What is the purpose of the Act and how does it affect me?

• The Motor Vehicle Safety Act (MVSA) regulates the manufacture and importation of motor vehicles and motor vehicle equipment to reduce the risk of death, injury and damage to property and the environment and has been in effect since 1971.

Must all vehicles imported into Canada be compliant with Canadian Motor Vehicle Safety Standards?

• The MVSA requires that all vehicles imported into Canada be in compliance with the Canada Motor Vehicle Safety Regulations and associated Canada Motor Vehicle Safety Standards (CMVSS).

Does the Motor Vehicle Safety Act Prohibit Vehicles Purchased in The United States from being Imported Into Canada?

• Subsection 7(2) of the MVSA provides an exception whereby vehicles purchased in the US that are not in full compliance with applicable CMVSS may be imported into Canada provided the vehicle was originally manufactured to comply with all applicable US Federal Safety Standards and can be made to comply with those CMVSS it does not meet and be inspected by a designated authority of Transport Canada known as the Registrar of Imported Vehicles (RIV).

When did the Registrar of Imported Vehicle Start?

• In 1995, following an open bidding process, Transport Canada contracted with a private company to establish the Registrar of Imported Vehicles (RIV) program to develop and operate a system of inspection and certification of imported vehicles from the United States. The same process was repeated in 2000 and 2005.

What is the objective of Registrar of Imported Vehicles?

• The objective of the program is to protect Canadian road users by ensuring that vehicles imported from the United States provide a comparable level of safety to that of similar Canadian-specification vehicles. The federal government has established this inspection and certification program to verify that imported vehicles meet Canadian requirements.

What does the Registrar of Imported Vehicles (RIV) check?

• Any modifications carried out to bring U.S. vehicles into compliance with Canadian requirements, such as daytime running lamps, immobilizers and bilingual and metric labelling, are to be made before the vehicle is presented for licensing by a province/territory. In order for a vehicle to pass inspection, its importer must also demonstrate that the vehicle has no outstanding recalls.

Who funds the Registrar of Imported Vehicle (RIV) Program?

• The program is funded through user fees charged to the importer who chooses to purchase a vehicle in the United States rather than being subsidized by Canadian tax dollars.

Is Transport Canada Committed to Harmonize Canadian Motor Vehicle Safety Standards with those of the United States?

• Safety Standards are currently closely aligned between the two countries and Transport Canada is committed to harmonizing our vehicle safety standards with those of the United States in all cases where possible. However, in certain cases, Transport Canada will pursue a made in Canada approach where there is a demonstrated benefit to the Canadian public.

Why did Transport Canada introduce anti-theft electronic immobilizers and not harmonize with US safety standard 114?

• In an effort to reduce fatalities and injuries resulting from auto theft Transport Canada amended Canada Motor Vehicle Safety Standard 114 requiring every passenger car, every three-wheeled vehicle and every multi-purpose passenger vehicle and truck with a gross vehicle weight rating (GVWR) of 4 536 kg or less, except walk-in vans and emergency vehicles, to be equipped with an immobilization system if manufactured after September 1, 2007. Studies have estimated the direct dollar losses from motor vehicle theft in Canada to be $600 million per year. Furthermore, these studies have demonstrated that an average of 244 to 345 serious injuries and 11 lives could be saved each year if immobilization systems were installed on all Canadian vehicles. The United States does not have a similar mandatory electronic anti-theft requirement, therefore some vehicles manufactured for the United States market were not able to be imported. The United States “Theft Deterrent” standards are directed to parts markings as their means of reducing vehicle thefts for the purpose of disassembly into parts for illicit sale (chop shops).

Does Transport Canada have a list of vehicles that may be imported from the United States?

• As a convenience to both importers and manufacturers the RIV has on its website, a “List of Vehicles Admissible from the United States”.

Who is responsible to determine the vehicle's compliance with Canadian Motor Vehicle Safety Standards?

• Manufacturers are responsible for certifying the vehicles' compliance with Canadian safety standards and/or certify that the vehicles can be modified to meet these standards.

Who is responsible to update the List of Admissible Vehicles?

• The manufacturers are responsible for providing this admissibility information to Transport Canada and the latter is responsible for updating it as needed. As a result, the List is subject to change based on the information provided to Transport Canada.

Is the List of Admissible Vehicles mandated by law?

• The List of Vehicles Admissible from the United States is not mandated by law. It is an administrative tool meant to assist in the processing of imported vehicles. Manufacturers are not obligated to submit admissibility information, but most do so voluntarily since they would otherwise have to deal individually with importers. Any inquiry about the accuracy of the information must therefore be directed to the manufacturers directly.

What can an importer do to ensure the vehicle can be imported into Canada?

• Since the information provided by the manufacturers varies periodically, prospective Canadian importers must exercise caution and inform themselves thoroughly on all aspects of purchasing a vehicle in the United States, including warranty coverage.

Why are some manufacturers charging a fee for information about the vehicle's admissibility or for recall clearance letters?

• For a variety of reasons, some manufacturers have become reluctant to provide admissibility information to importers, the RIV and to Transport Canada. Some manufacturers are also charging a fee to importers requesting a letter specifying that there are no outstanding recalls on the vehicle they wish to import. Transport Canada has no authority to dictate to those manufacturers when and how this information ought to be supplied, or to request that manufacturers provide the recall information free of charge since these manufacturers are normally located in the United States and the vehicles in question are initially produced for the U.S. market.

Why can't Transport Canada provide recall information about vehicles purchased in the United States?

• Neither Transport Canada nor the RIV have access to the recall information of a manufacturer that produces vehicles for the U.S. market. The information in Transport Canada's database relates only to vehicles produced for the Canadian market and originally sold in Canada. In many instances, the Canadian company and the U.S. company are two separate entities and do not share recall information. Therefore, it is important to ensure in a reliable manner that there are no outstanding recalls on vehicles purchased at the retail level in the United States and imported into Canada.

Does the Motor Vehicle Safety Act regulate vehicle warranties?

• The MVSA does not mandate or regulate warranties provided by manufacturers and importers. Some companies' have refused to honour their U.S. factory warranties in Canada or have instructed their U.S.-based dealers not to sell to Canadian customers. Warranties and refusal to sell are company-specific and one must contact the company directly to obtain additional details and clarifications

What is Transport Canada doing about the price differential between vehicles sold in the United States and Canada?

• The MVSA does not regulate the pricing of vehicles by manufacturers and importers. Pricing is a company-specific policy and one must contact these companies directly to obtain additional details and clarifications. If you have information concerning anti-competitive activity in the automobile industry, such as an agreement between competitors to fix the prices of vehicles, or actions by a company that have an adverse effect on competitors or that reduce competition, please contact the Competition Bureau.

Does the Motor Vehicle Safety Act require that the modifications to bring the vehicle into compliance with Canadian standards be performed by the original manufacturer?

• The MVSA only requires that the importer ensure that the vehicle is made compliant with the applicable safety standards and is not specific as to who must do the work. In some cases, manufacturers are insisting that the modifications necessary to activate or install daytime running lights be performed by their authorized dealers and in some cases also require that the instrument cluster be changed. The basic principle of compliance under the MVSA is a regime of self-certification whereby it is the manufacturer who ultimately determines whether its vehicles comply with the Canada Motor Vehicle Safety Standards (CMVSS) and how the vehicle may be modified should it not comply. Should the manufacturer determine that various components must be replaced and the work can only be done by a qualified, authorized dealer in order to ensure compliance, Transport Canada is not in a position challenge such a decision. The cost associated with such modifications is also beyond the control of Transport Canada. Any comments concerning the cost of the modifications may be directed to Industry Canada's Office of Consumers Affairs or to provincial/territorial Ministries of Consumer Affairs.

Does the Motor Vehicle Safety Act contravene the North American Free Trade Agreement (NAFTA)?

• The NAFTA was negotiated to remove tariffs from selected products over a specified period of time in order to facilitate movement of goods without Governmental financial restrictions. Safety is not a negotiable item and each signatory country may apply regulations to ensure the safety of the products imported. Any additional inquiries relating to the North American Free Trade Agreement provisions that may or may not apply to protection for Canadian consumers should be directed to the Department of Foreign Affairs and International Trade.

What did Transport Canada do to solve the problem of new 2008 model year vehicles imported from the United States that did not have electronic anti-theft immobilizers installed, certified to Canadian Motor Vehicle Safety Standards?

• On December 19, 2007, Transport Canada amended section 12 of the Motor Vehicle Safety Regulations with the respect to electronic anti-theft immobilizers to facilitate the importation of vehicles sold at the retail level in the United States while still ensuring safety of the Canadian public. For more information on this amendment, please consult the department's News Release online at http://www.tc.gc.ca/mediaroom/releases/nat/2007/07-h245e.htm.